Emerging Markets Analysis: The “South-South” Trade Surge
Emerging markets are entering 2026 as the primary engines of global trade rebalancing. With growth in advanced economies hovering around 1.5%, the average 4% growth across emerging sectors is attracting significant foreign direct investment (FDI) into food infrastructure.
Africa:
Investment is pivoting toward local-to-local production. Sub-Saharan Africa is projected to see a 15% increase in rice import demand this year, but the long-term trend is shifting toward agrotech hubs in countries such as Kenya and Nigeria, aimed at reducing reliance on external grain corridors.
Latin America:
Brazil continues its role as a “natural powerhouse,” now accounting for nearly 50% of all agricultural investment activity in the region. There is a notable surge in the development of green corridors—logistics routes powered by renewable energy—connecting Argentinian and Brazilian producers directly to markets in Southeast Asia.
Growth Drivers:
Digitalization of the supply chain is no longer a luxury in these markets. Blockchain-enabled traceability and DeFi (Decentralized Finance) trade credit are bridging the financing gap for SMEs, enabling them to scale into international markets more rapidly than in previous cycles.